Trump Administration Suspends Microsoft From Key Visa Program, Citing Fraud

The Trump administration has suspended Microsoft and several other major technology companies from the Permanent Labor Certification (PERM) program, a pathway for foreign workers to obtain green cards. The action stems from accusations of fraud and abuse within the program, according to officials.

Vice President Vance stated Thursday that the administration is targeting companies that allegedly use the H-1B1 visa program to replace American workers with cheaper foreign labor. "If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants," Vance said at an event for his government fraud task force.

Secretary of Labor Keith Sonderling announced that in addition to Microsoft, companies including Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, and Adobe will also be suspended. "We will not accept any new or process any pending permanent labor certification applications involving these companies," Sonderling said. He added that since 2009, these companies alone have requested nearly 3 million foreign workers.

The PERM program allows employers to petition for foreign workers to become permanent residents if there are insufficient U.S. workers qualified for the positions. Critics of the program argue it is frequently exploited to hire lower-paid foreign workers, displacing American employees.

Microsoft, which did not immediately respond to a request for comment, is expected to have its CEO, Satya Nadella, present with President Trump later Thursday when Nadella is scheduled to receive the National Medal of Technology and Innovation.